Stanley Electric (6923) Medium-term business plan: Defend automotive business via top-line growth and stronger cost competitiveness

研报英文原文证据摘录

Stanley Electric (6923) Medium-term business plan: Defend automotive business via top-line growth and stronger cost competitiveness

J P M O R G A N Asia Pacific Equity Research

22 May 2026

Stanley Electric (6923)

Medium-term business plan: Defend automotive Neutral

business via top-line growth and stronger cost 6923.T, 6923 JP

competitiveness Price (22 May 26):¥3,488

Price Target (Dec-26):¥3,200

• Four-year MTP: Stanley Electric held a FY2025 results briefing and Japan Equity Research

announced a four-year medium-term business plan (MTP) on May 22. It aims

Autos & Auto Parts

for revenue and profit growth in FY2026, expecting the impact of price cuts to

be offset by the dropout of the one-time costs (e.g., quality costs) seen in Akira Kishimoto AC

FY2025, streamlining benefits (+¥14.3 billion), and new consolidation of (81-3) 6736-8646

akira.x.kishimoto@jpmorgan.com

Iwasaki Electric. The MTP for FY2026–29 targets FY2029 revenue at ¥700

Wencong Zhang

billion, operating profit at ¥70 billion, and ROE at 10%. We think Stanley (81-3) 6736-8627

Electric’s targets for a revenue CAGR of 7.8% and operating profit CAGR of wencong.zhang@jpmorgan.com

13.2% are somewhat ambitious. Key factors in the automotive lamp business JPMorgan Securities Japan Co., Ltd.

are continued steady growth in the Americas, turnaround of the problematic

China business, and growth in the motorcycle business. To strengthen the

competitiveness of the China business, the company aims to solidify its

business with Japanese OEMs and expand sales to non-Japanese OEMs in the

Chinese market by establishing advantages in cost competitiveness. In the area

of automated driving (AD) and advanced driver assistance systems (ADAS),

the company will work to increase sales of ADAS systems and expand the